@devincottrell wrote:And the freedom rise definitely seems like a decent option, what would be the best way to utilize this card to gain the most and help my credit? (I've heard things like credit utilization rate etc and want to make sure that's accurate)
To be clear, I suggested the Freedom Rise since you said you bank with Chase and wanted to keep everything in one spot (that also increases your approval odds). For Chase that's the perfect gateway card for beginners; with responsible use it will open the door for you to get other Chase cards down the road (like the CSP) as well as cards with other issuers. The bottom line is that with where you are at in your credit journey (the very beginning) you likely won't get approved for any "advanced" cards right now (with Chase or anyone else). The best thing you can do is get started with a "beginner" card to establish some credit history... use it for your regular spend, pay off your balances each month and ensure that you keep your reporting utilization under 10% (you will get some varying opinions on that but I've found that to be the sweet spot for me). As you use the card and show you can handle it Chase will likely grant you CLIs, potentially as soon as a few months after card opening. This will make managing your utilization easier and also continue to build your file. I know you're excited to get into the credit game but you have to remember that it's a marathon and not a sprint, no matter how fast you want to move. Stay patient and make good decisions and it will pay off.
This place is a wealth of knowlege with folks happy to help along the journey; I wish I had this resource when I was 18.
One clarifying point about the reporting utilization thing...to get the best score you actually want a small statement balance to report on your statement (statement date); just be sure to pay it in full by the due date. I used under 10% as the threshold, which means under 10% of the card's credit limit. So, for example, if the card has a $1000 limit then the statement balance should be under $100. If you have a lower limit ( $500, for example) you can cycle your limit if needed by making payments during the month to free up more credit; just make sure that the balance that reports on your statement is under 10% ($50).
@devincottrell wrote:Hey y'all, apologies in advanced if this has already been asked and answered.
So I have been an authorized user on a relatives credit card since I was 16, I turned 18 just recently on the 18th and was hoping for some type of credit score. But it has been almost a week now with no update, did I get it wrong that I would receive any type of credit score? I really wanted to open a Chase Sapphire Preferred card but I cannot do that with a credit score. I guess my question is should I start applying for starter credit cards or should I wait a bit longer to see an update in my score if any update?
1. Welcome to the forum.
2. You should apply for just one "starter" card. My suggestion would be to go for a secured card with a credit union or with Discover. Do not go for the sub-prime cards.
3. The Chase Sapphire Preferred is at least a year or two down the road; that card requires a track record.
@devincottrell That's a great starting limit, congrats! Just spend as you normally would; no need to put charges on the card just because. With that said, there are many examples of people who spend close to their limit every month for a few months that end up receiving auto CLIs from Chase in a short time. That shouldn't be your focus, though, honestly...responsible use in general will get you where you want to go.
@devincottrell wrote:Oh okay so the credit history only counts when it's your credit card only and not a authorized user even if you did use it regularly?
Sorry that's my mistake, I meant the 60,000 bonus points you can get (or around $750 in travel according to chase's website). What I meant to say was streaming services and stuff. I was thinking of a completely different card that Citi offers for gas (Citi Anywhere Visa) which will probably be the 2nd card I'll get after the CSP whenever I am able to get that.
Also yes I am aware it does have a $95 annual fee, which is nothing really compared to some other cards out there.
So I could qualify for "higher end" cards other than chase if that's correct? So if I wanted to, I could probably get the AMEX gold card myself if I decided to?
And the freedom rise definitely seems like a decent option, what would be the best way to utilize this card to gain the most and help my credit? (I've heard things like credit utilization rate etc and want to make sure that's accurate)
The best way to use your new card when you get it, to maximize your scores, is to make sure that only a small balance is "reported". It is tricky with Chase because when you pay it down to zero, it reports mid-cycle.
@devincottrell wrote:Got it, thanks. I applied for the Freedom Rise just this morning and was approved at a $2500 for it. So I understand spending less than 10% of that but should you be trying to spend that amount every statement or will it really matter if you spend $40 on one statement and $230 on the next?
It doesn't matter how much you "spend" on it, for scoring purposes, it only matters what "reports". That will be (a) the statement balance, and (b) zero if you pay it off mid-cycle (a Chase feature not replicated by any other lender).
If you report $40 on one statement, and $230 on the next, no it won't matter.
